Samsung buys out Sony from LCD partnership

Korean giant pays out £600m

Samsung has bought out its partner Sony from a joint venture in LCD production, spending around £600 million or close to a billion dollars.

The deal – worth 1.08 Korean Won – has been done in cash, and cements Samsung's place at the top of the television-manufacturing tree.

"Under the agreement, Samsung will acquire all of Sony's shares of S-LCD Corporation, the two companies' LCD panel manufacturing joint venture, making S-LCD a wholly owned subsidiary of Samsung," said Samsung's statement.

Challenging

"In order to respond to such challenging conditions and to strengthen their respective market competitiveness, the two companies have agreed to shift to a new LCD panel business alliance," it continued.

For Sony, it's the latest stage in its efforts to make its television business profitable once more, in a year that can only be described as an annus horribilis for the Japanese giant.

Not did the horrific earthquake that robbed so many Japanese of their lives also hit production hard, but 2011 will be remembered as the year in which hackers infiltrated the PlayStation Network (PSN).

The buyout will also serve to remind people of the big shift in consumer electronics, which has seen Korean companies like Samsung and LG become huge successful global brands as Japanese companies have struggled to maintain profitability.